Why is this useful?
- For Consumers: It provides an easy way to manage monthly expenses without dipping into your savings immediately.
- For Businesses: It offers an additional payment option, potentially reducing cart abandonment and boosting sales.
The Reserve Bank of India has recently expanded UPI’s capabilities to include pre-approved credit lines, making this feature possible. PhonePe’s update builds on this by allowing direct linkage of these credit lines to UPI for seamless payments.
How to Get Started:
- Open the PhonePe app and go to your profile section.
- Select the bank from which you have a credit line.
- Follow the prompts to link your credit line to UPI and set up a UPI PIN.
- Once linked, your credit line will be available as a payment option during checkout.